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Water Use for Oil and Gas Activity 2013 Annual Report PURPOSE ROLE of the BC OIL and GAS COMMISSION

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Water Use for Oil and Gas Activity 2013 Annual Report PURPOSE ROLE of the BC OIL and GAS COMMISSION Water Use for Oil and Gas Activity 2013 Annual Report PURPOSE ROLE OF THE BC OIL AND GAS COMMISSION................................... 4 HOW WATER IS USED 5 TABLE OF The purpose of the 2013 Annual Report on Water Use for Oil HOW WATER IS ACCESSED 5 and Gas Activity is to present data and information on water COMMISSION AUTHORITY FOR WATER 6 TOOLS FOR WATER MANAGEMENT 7 CONTENTS approvals, water withdrawal and water use related to the oil and gas industry, including hydraulic fracturing. EXECUTIVE SUMMARY - 2013 SNAPSHOT....................................... 8 TABLE 1 - WATER APPROVAL AND USE FOR OIL AND GAS ACTIVITIES IN 2013 8 This report contains short-term water use data from the FIGURE 1 - COMPARISON OF ANNUAL RUNOFF, WATER APPROVALS AND VOLUMES REPORTED 2013 calendar year, including the cumulative volume of WITHDRAWN IN 2013 9 water approved for use and the volume reported as actually TABLE 2 - QUARTERLY WATER WITHDRAWALS FROM SECTION 8 APPROVALS, 2011-2013 9 used by permit holders. It includes similar data on water SECTION 8 WATER APPROVALS: SHORT-TERM WATER USE................... 10 licences in northeast British Columbia, which are valid TABLE 3 - SHORT-TERM WATER USE APPROVALS AND WITHDRAWALS AS PERCENTAGE for periods greater than two years. Information on water OF MEAN ANNUAL RUNOFF IN 2013 11 source wells, a well drilled to obtain water for the purpose TABLE 4 - SECTION 8 WATER SOURCE TYPES IN 2013 12 of injection into underground formations to enhance oil TABLE 5 - 2013 SECTION 8 WATER APPROVALS AND USE DATA ORGANIZED BY COMPANY 13 and natural gas recovery, is included in the report. Finally, WATER LICENCES: LONG-TERM WATER USE...................................... 14 details on the volume of water used specifically for hydraulic FLOW THROUGH AND CONSUMPTIVE WATER LICENCES 14 fracturing are summarized. TABLE 6 - WATER LICENCES ACTIVE IN 2013 AND TRANSFERRED TO THE RESPONSIBILITY OF THE COMMISSION 15 WATER SOURCE WELLS............................................................... 16 TABLE 7 - COMPARISON OF WATER SOURCE WELL WITHDRAWALS FOR 2013 16 TABLE 8 - REPORTED WATER SOURCE WELL WITHDRAWALS FOR 2013 17 HYDRAULIC FRACTURING ........................................................... 18 Previous annual water reports and quarterly updates are available on the Commission’s website at: FIGURE 2 - SOURCES FOR ACQUISITION OF WATER USED FOR HYDRAULIC FRACTURING 18 http://www.bcogc.ca/public-zone/water-information TABLE 9 - WATER USED FOR HYDRAULIC FRACTURING IN 2012 AND 2013 19 For specific questions or enquiries COMMISSION INNOVATION ......................................................... 20 regarding this data, please contact: NORTHEAST WATER TOOL (NEWT) 20 Jonathan Boyd WATER INFORMATION PORTAL 21 Hydrology Technician [email protected] GLOSSARY .............................................................................. 22 APPENDICES ........................................................................... 23 APPENDIX 1: MAP - ACTIVE WATER SOURCE WELLS IN 2013 23 APPENDIX 2: TABLE - WATER APPROVAL AND USE ORGANIZED BY OGC WATER MANAGEMENT BASIN IN 2013 24 2 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 3 Role of the BC OIL AND GAS COMMISSION HOW WATER IS USED HOW WATER IS ACCESSED Water is used for various purposes in the oil and gas industry. There are different ways the oil and gas industry in British Columbia may access water. Some The BC Oil and Gas Commission (Commission) is LIARD BASIN CORDOVA EMBAYMENT Commission Office Locations The largest use of water for oil and gas methods are managed through provincial legislation, including: a single-window Crown corporation that regulates oil Throughout B.C. activities is for hydraulic fracturing. HORN RIVER BASIN • Water licences issued under the Water Act. The Commission has staff designated and gas activity in the Province of British Columbia. fort nelson as Regional Water Managers with authority for issuing and administering long-term water licences. The Commission regulates industry by way of the MONTNEY commission oce locations However, water is used for other purposes, such as: administration of the Oil and Gas Activities Act • Short-term surface water use or diversion approvals issued under northeast B.C. (OGAA), the Petroleum and Natural Gas (PNG) Act, fort st. john natural resource plays Section 8 of the Water Act. Short-term water use is administered by the Commission. and associated regulations. Specified enactments Seismic or geophysical exploration provide the Commission additional authorities to dawson creek • Water source wells authorized by the Commission under OGAA. Water source permit oil and gas activities related to forestry, heritage wells are a specific type of well where the water withdrawn is intended for the purpose conservation, roads, land and water use, and other Drilling of injection into an underground formation to enhance oil or natural gas recovery. natural resources. This consolidated authority allows • Flowback water that returns to the surface after being injected for hydraulic the Commission to monitor activity in a comprehensive fracturing. and effective manner where oil and gas activities Machine washing occur, including on Crown land, privately held land, • Produced water that flows to the surface as a by-product of oil and gas production. and the Agricultural Land Reserve. The oil and gas industry can also access water by means currently outside of regulatory oversight: The Commission is responsible for reviewing, kelowna Dust control assessing, and making decisions on water authorizations from both surface and subsurface water sources. The Commission has the expertise victoria Water floods (to enhance oil recovery) The Commission’s workforce operates out of and tools to make informed water allocation decisions; Fort Nelson, Fort St. John, Dawson Creek, protecting and maintaining environmental and Kelowna and Victoria, with the largest number of • Private agreements can be made with landowners or others who have a source of surface community water needs are its first priorities. employees concentrated in Fort St. John, the heart Ice road freezing water supply such as a dugout or a groundwater well. The Commission manages water use with a specific focus of oil and gas activity in the province. The offices Where water authorization is granted, the Commission on environmental values at every opportunity, monitoring in Fort Nelson and Dawson Creek ensure the • Groundwater wells for oil and gas use where the activity does not involve water becomes responsible for regulating the permissions by the water withdrawal and enforcing compliance with Commission’s presence in communities of the Horn Hydrostatic testing of pipelines injection (hydraulic fracturing) into the subsurface. These purposes include road maintenance, which oil and gas companies operate. applicable legislation where required. River Basin and Montney gas plays respectively. geophysical exploration, and other possible uses. 4 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 2013 ANNUAL REPORT ON WATER USE FOR OIL AND GAS ACTIVITY 5 COMMISSION AUTHORITY FOR WATER WATER USE REPORTING TOOLS FOR WATER MANAGEMENT T he Water Act is the primary provincial statute Approvals under Section 8 authorize the diversion and administer water licences, generally for terms of five years For surface water sources managed under short-term The Commission manages water approvals and use with regulating water resources in B.C. Currently, only surface use of water for a term not exceeding two years. Short- or more, to the oil and gas sector. water use approvals, operators must report monthly water specific focus on environmental values. water in a “stream” is vested to the Crown for allocation term water use approvals are typically used by industry withdrawals from each approved withdrawal location on through the Water Act. A “stream” includes a natural during the exploration phase of development of natural As well as regulating surface water used for oil and gas a quarterly basis to the Commission. Companies failing Methods and tools include: watercourse or source of water supply, whether usually gas or oil leases. Upon expiry, subsequent short-term activities, the Commission regulates aspects of subsurface to report water usage are referred to the Commission’s water resources. OGAA provides the Commission containing water or not, and a lake, river, creek, spring, water use approvals can be issued to applicants should Compliance and Enforcement team. The role of this team • Seismic or geophysical exploration. ravine, swamp and gulch. further use of a short-term nature be required. authority for groundwater management of water source is to investigate non-compliance, ensure operators comply wells. A water source well is used to acquire water for with laws and permit conditions, and conduct follow-up • The development of OGC Watershed Management Basins for northeast Surface water use under the Water Act is regulated by the In March 2013, specific Commission staff were injection to enhance oil or gas recovery. Water-related inspections. B.C. (derived from the Ministry of Environment’s Freshwater Atlas base Commission through two processes: designated as Regional Water Managers under the definitions are available on page 22. map). • Section 8 of the Water Act allows for the Water Act, giving the Commission authority to issue and • The review of water use applications on a watershed basis with an The
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